Origin Bancorp, Inc. (NYSE:OBK) is one of Jim Cramer’s latest stock calls as oil drops and the U.S. market rises. When a caller inquired about the stock during the lightning round, Cramer said, “It’s okay. Not great. Not bad. That’s not enough for me to own it.” Photo by Artem Podrez on Pexels Origin Bancorp, Inc. (NYSE:OBK) is a bank holding company that provides financial services, including deposit accounts, insurance products, and some commercial and residential lending solutions. It is worth noting ...

Company Overview - Origin Bancorp is a regional financial institution that serves a broad base of commercial and retail customers through a diversified product portfolio and deep local relationships [5] - The company focuses on community banking and tailored financial solutions, providing a competitive edge in its core southern U.S. markets [5] - As of the trailing twelve months (TTM), Origin Bancorp reported revenue of $388.99 million and net income of $75.20 million, with a dividend yield of 1.5% [4] Recent Transaction - On February 17, 2026, Elizabeth Park Capital Advisors disclosed the purchase of 70,151 shares of Origin Bancorp, valued at an estimated $2.51 million based on quarterly average pricing [1][2] - This transaction increased Elizabeth Park's position in Origin Bancorp, with the position's value rising by $2.81 million from the prior quarter, reflecting both the additional shares and share price changes [2] Financial Performance - Origin Bancorp generated net income of approximately $75 million in 2025, indicating continued growth in lending activity and stable deposit funding across Texas, Louisiana, and Mississippi [9] - The bank's strategic focus on commercial lending and treasury services for small and mid-sized businesses supports recurring revenue over time [9] Stock Performance - As of the last reported price, shares of Origin Bancorp were trading at $40.61, representing a 17% increase over the past year, which is slightly behind the S&P 500's approximately 20% gain during the same period [7] - The stock has shown resilience, with much of the gain occurring after the end of the quarter, despite the broader market being down about 3% during that time [10] Investment Strategy - The position in Origin Bancorp represents 3.9% of Elizabeth Park Capital Advisors' 13F reportable assets under management (AUM), indicating a strategic focus on smaller lenders with strong regional footprints [7][11] - Other top holdings in the portfolio include QCR Holdings, Citizens Financial, and Valley National, suggesting a clear investment strategy in regional banking [11]

Financial Performance - Net income for the year ended December 31, 2025, decreased by $1.3 million, or 1.7%, to $75.2 million compared to $76.5 million for 2024[266] - Diluted EPS for 2025 was reported at $2.40, down from $2.45 in 2024, impacted by borrower fraud[264][266] - Noninterest income increased by $4.5 million, or 8.0%, to $59.8 million for the year ended December 31, 2025, driven by increases in swap fee income, other income, and changes in fair value of equity investments[284] - Noninterest expense decreased by $2.1 million, or 0.9%, to $248.9 million for the year ended December 31, 2025, mainly due to a reduction in other expenses[291] - Income tax expense for the year ended December 31, 2025, was $20.4 million, with an effective tax rate of 21.4%[297] Interest Income and Expense - Net interest income for 2025 increased by $30.6 million, or 10.2%, to $331.0 million compared to 2024, primarily due to a $57.2 million decrease in interest expense[268] - Interest expense decreased by $57.2 million, mainly due to a $55.4 million reduction in interest on interest-bearing deposits, driven by lower interest rates[269] - The net interest margin (NIM-FTE) for 2025 was 3.61%, a 39-basis point increase from 3.22% in 2024, driven by an expanding interest rate spread[272] - The average yield on total interest-earning assets for 2025 was 5.83%, compared to 6.01% for 2024, while the average rate on total interest-bearing liabilities was 3.18%[272] - The company experienced a $39.1 million reduction in interest income on loans held for investment (LHFI) for 2025, partially offset by increases in interest income from investment securities[270] Loans and Credit Quality - Provision for credit losses increased by $38.8 million to $46.3 million for the year ended December 31, 2025, primarily due to borrower fraud impacting the Tricolor Holdings, LLC loan relationship[279] - Net charge-offs rose by $25.1 million to $39.6 million for the year ended December 31, 2025, with $29.5 million attributed to borrower fraud, resulting in a net charge-off ratio of 0.52%[280] - The loan portfolio composition included 32.9% in commercial real estate loans, which totaled $2.52 billion, up from 32.7% in 2024[301][306] - Nonperforming LHFI rose to $81.2 million, an increase of $6.2 million from $75.0 million in 2024, resulting in a nonperforming LHFI ratio of 1.06% compared to 0.99%[315][316] - The total nonperforming assets increased to $81.9 million, up from $78.6 million in the previous year, with a ratio of nonperforming assets to total assets at 0.84%[315] Assets and Liabilities - The company reported a total asset value of $9,770,267, with stockholders' equity at $1,204,592[274] - Total liabilities reached $8,565,675, with interest-bearing liabilities totaling $6,501,246 and a net interest spread of 2.65%[274] - Total assets increased by $46.0 million, or 0.5%, to $9.72 billion at December 31, 2025, primarily due to increases in loans held for investment (LHFI) and equity method investments[298] - Total liabilities decreased by $55.4 million, or 0.6%, to $8.48 billion at December 31, 2025, with subordinated indebtedness down by 89.7% to $16.5 million[299] - Total deposits increased by $84.1 million, or 1.0%, to $8.31 billion at December 31, 2025, primarily due to increases in money market and noninterest-bearing deposits[299] Capital and Equity - Book value per common share increased to $40.28 in 2025 from $36.71 in 2024[267] - Stockholders' equity increased to $1,246.7 million by December 31, 2025, from $1,145.2 million at the beginning of the year, driven by net income of $75.2 million and other comprehensive income of $51.9 million[374] - The company maintained a Common Equity Tier 1 capital ratio of 13.54% as of December 31, 2025, compared to 13.32% in 2024, indicating improved capital strength[380] Deposits - Noninterest-bearing demand deposits rose by $79.2 million, or 4.2%, to $1.98 billion, representing 23.8% of total deposits[343] - Money market deposits increased by $351.0 million, or 12.0%, to $3.28 billion, accounting for 39.5% of total deposits[343] - Interest-bearing demand deposits decreased by $142.8 million, or 6.9%, to $1.92 billion, representing 23.1% of total deposits[343] - The amount of deposits exceeding the FDIC insurance limit was $3.93 billion at December 31, 2025, compared to $3.66 billion in 2024[351] Interest Rate Risk and Economic Factors - The Federal Reserve reduced the federal funds target rate range three times in 2025, totaling a 75 basis point decrease, impacting overall interest rates[271] - The company employs interest rate risk simulation models to assess the sensitivity of net interest income and fair value of equity, incorporating various assumptions about asset repricing and market conditions[386] - A sustained increase in interest rates is projected to decrease the fair value of equity, with a 400-basis point increase resulting in a decrease of 6.7%[389] - Inflation affects financial institutions by increasing costs, which may adversely impact liquidity, earnings, and stockholders' equity, although interest rates have a more significant impact on performance[393]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1]. Company Overview: Origin Bancorp (OBK) - Origin Bancorp currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2]. - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3]. Performance Metrics - Over the past week, OBK shares increased by 4.82%, outperforming the Zacks Banks - Southeast industry, which rose by 1.25% [5]. - In a longer timeframe, OBK's monthly price change is 15.87%, significantly higher than the industry's 5.81% [5]. - Over the last quarter, OBK shares have risen by 30.28%, while the S&P 500 only increased by 0.3% during the same period [6]. - Year-to-date, OBK shares are up 13.76%, compared to the S&P 500's 13.4% increase [6]. Trading Volume - OBK's average 20-day trading volume is 283,271 shares, which serves as a bullish indicator when combined with rising stock prices [7]. Earnings Outlook - In the past two months, two earnings estimates for OBK have been revised upwards, with the consensus estimate increasing from $3.72 to $3.85 [9]. - For the next fiscal year, two estimates have also moved higher, with no downward revisions noted [9]. Conclusion - Given the strong performance metrics and positive earnings outlook, OBK is identified as a solid momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [11].

Financial Data and Key Metrics Changes - The company reported earnings per share of $0.95 and net income of $29.5 million, achieving a run rate on average assets of 1.19%, exceeding the targeted 1% [10] - Net interest income (NII) increased by 10.2%, while revenue, excluding notable items, rose by 8.8% [5] - Non-interest expense, excluding notable items, decreased by 0.7% [5] - The annualized pre-tax, pre-provision return on assets (ROA) increased to 1.7% from 1.63% [10] Business Line Data and Key Metrics Changes - Loan origination increased by approximately $500 million, or 37% year-over-year, with loan and swap fees rising by 57% during the same period [6] - The company achieved 20% ownership of Argent Financial and restructured mortgage delivery [5] - Non-interest income for Q4 was reported at $16.7 million, declining to $16.3 million when excluding notable items [14] Market Data and Key Metrics Changes - The company added over 10 production bankers in Houston and Dallas-Fort Worth, indicating a strategic focus on market disruption [7] - Total past dues at year-end were 0.96% of total loans, reflecting no change from the prior quarter [8] - Non-performing assets declined from 1.07% at year-end, showing an approximately $7 million reduction [8] Company Strategy and Development Direction - The company is focused on "Optimize Origin," aiming for a top quartile ROA and leveraging market disruptions from recent M&A activity [3][4] - The strategy includes investing approximately $10 million in new bankers and banking teams throughout the year to drive growth [7] - The company plans to intensify focus on client delivery models for additional revenue growth in 2026 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing significant momentum and a strong earnings profile as they enter 2026 [17] - The company anticipates loan growth to be more weighted to the second half of the year, targeting mid to high single-digit growth for loans and deposits [12][11] - Management emphasized the importance of maintaining discipline in growth to ensure profitability and ROA targets [54] Other Important Information - The tangible book value grew sequentially to $35.04, marking the 13th consecutive quarter of growth [15] - The company redeemed approximately $145 million in subordinated debt and repurchased about $16 million worth of common stock while maintaining strong capital ratios [16] Q&A Session Summary Question: What is the target for new producer hires this year? - Management indicated that the $10 million budget allows for hiring additional producers beyond the initial 10, with ongoing strategic conversations in various markets [21][22] Question: How does the net interest margin outlook look for the upcoming quarters? - Management noted that while there may be slight margin compression in Q1 due to timing differences, they expect net interest margin to stabilize in the 3.70%-3.80% range by Q4 [13][33] Question: What types of lenders are being targeted for new hires? - The focus is on C&I-focused lenders, treasury management officers, and private bankers, with a consistent opportunity for hiring expected throughout the year [39][41] Question: How does the company plan to manage expenses with new hires? - Management is committed to reducing expenses while bringing in new hires, ensuring that the impact on profitability is neutralized [42][43] Question: What is the company's approach to loan growth and credit quality? - Management is focused on improving credit quality by shifting towards better-performing loans and managing non-performing assets effectively [73]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $0.95 and net income of $29.5 million, achieving a run rate on average assets of 1.19%, exceeding the targeted 1%+ run rate [10] - Net interest income (NII) increased by 10.2%, while revenue, excluding notable items, rose by 8.8% [5] - Non-interest expense, excluding notable items, decreased by 0.7% [5] - The annualized pre-tax, pre-provision return on assets (ROA) increased to 1.7% from 1.63% [10] Business Line Data and Key Metrics Changes - Loan origination increased approximately $500 million, or 37% year-over-year, with loan and swap fees rising by 57% during the same period [6] - The company achieved 20% ownership of Argent Financial and consolidated banking centers [5] - Non-interest income reported was $16.7 million in Q4, with a decline to $16.3 million when excluding notable items [14] Market Data and Key Metrics Changes - Total past dues at year-end were 0.96% of total loans, reflecting no change from the prior quarter [8] - Non-performing assets declined from 1.18% to 1.07% at year-end, indicating a reduction of approximately $7 million [8] - The company experienced a slight increase in total classified loans, rising from 1.4% to 1.92% of total loans [8] Company Strategy and Development Direction - The company is focused on the "Optimize Origin" initiative, aiming for a 1% ROA by Q4 2025 and ultimately targeting a top quartile ROA [3] - The strategy includes investing approximately $10 million in new bankers and banking teams to capitalize on market disruptions [7] - The company plans to intensify focus on client delivery models for additional revenue growth in 2026 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong momentum and readiness to leverage market opportunities [4] - The company anticipates loan growth to be more weighted towards the second half of the year, targeting mid to high single-digit growth for loans and deposits [12] - Management highlighted the importance of maintaining discipline in growth to ensure profitability [55] Other Important Information - The tangible book value grew sequentially to $35.04, marking the 13th consecutive quarter of growth [15] - The company redeemed approximately $145 million in subordinated debt and repurchased about $16 million worth of common stock while maintaining strong capital ratios [16] Q&A Session Summary Question: What is the target for new producer hires this year? - Management indicated that the $10 million budget allows for hiring additional bankers beyond the 10 already added, with ongoing strategic conversations in various markets [21][22] Question: How will new hires impact loan growth guidance? - Most new hires are expected to impact loan growth in the latter half of the year, with a focus on maintaining profitability [27][29] Question: What is the outlook for net interest margin? - Management anticipates slight margin compression in Q1 due to timing differences in loan versus deposit repricing, with expectations for margin expansion later in the year [31][33] Question: How does the company plan to compete for new hires? - The company focuses on its strong culture and geographic model to attract C&I-focused bankers, with an expected earnback period of 12-15 months for new hires [65][66] Question: What is the strategy regarding capital deployment? - Management plans to balance buybacks and dividends while focusing on organic growth opportunities, particularly in light of market disruptions [49][48]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported earnings per share of $0.95 and net income of $29.5 million, achieving a run rate on average assets of 1.19%, exceeding the targeted 1% [11][12] - Net interest income (NII) increased by 10.2%, while revenue, excluding notable items, rose by 8.8% [5][11] - Non-interest expense, excluding notable items, decreased by 0.7% [5][14] - The annualized pre-tax, pre-provision return on assets (ROA) increased to 1.7% from 1.63% [11] Business Line Data and Key Metrics Changes - Loan origination increased by approximately $500 million, or 37% year-over-year, with loan and swap fees rising by 57% [6][12] - Total loans grew by 1.8% sequentially and 1.1% when excluding mortgage warehouse [12] - Non-interest income reported was $16.7 million in Q4, with a decline to $16.3 million when excluding notable items [14] Market Data and Key Metrics Changes - The company achieved 20% ownership of Argent Financial and consolidated banking centers [5] - The company added more than 10 production bankers in Houston and Dallas-Fort Worth, indicating a strategic focus on market disruption [7] Company Strategy and Development Direction - The company is focused on "Optimize Origin," which aims to enhance performance and accountability while simplifying operations [3][6] - The strategy includes investing approximately $10 million in new bankers and banking teams throughout 2026 to capitalize on market opportunities [7][8] - The company anticipates loan and deposit growth in the mid to high single digits for the year, with a focus on M&A-driven disruption [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing significant momentum and a strong earnings profile as the company enters 2026 [17] - The current environment is viewed as an unprecedented opportunity for growth, with a focus on disciplined growth and profitability [8][52] - Management highlighted the importance of maintaining a balance between growth and expense management to achieve ROA targets [41][42] Other Important Information - The tangible book value grew sequentially to $35.04, marking the 13th consecutive quarter of growth [15] - The company redeemed approximately $145 million in subordinated debt and repurchased about $16 million worth of common stock while maintaining strong capital ratios [16] Q&A Session Summary Question: What is the target for new producer hires this year? - Management indicated that the $10 million budget allows for hiring additional producers beyond the 10 already added, with ongoing strategic conversations in various markets [20][21] Question: How does the company view competition in the current market? - Management noted that competition remains intense but rational, with opportunities to grow margins and ROA [51][52] Question: What is the expected impact of new hires on loan growth? - Most new hires are expected to impact loan growth in the latter half of the year, with a focus on disciplined pricing and relationship building [27][39] Question: How does the company plan to manage expenses with new hires? - Management emphasized ongoing expense management efforts to offset the costs of new hires, aiming for a neutral impact on overall expenses [41][42] Question: What is the outlook for net interest margin? - Management anticipates slight margin compression in Q1 due to timing differences but expects net interest margin to stabilize in the 3.70%-3.80% range by Q4 [13][33]

ORIGIN BANCORP, INC. 4Q TWENTY25 INVESTOR PRESENTATION FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin Bancorp, Inc's ("Origin", "we", "our" or the "Company") future financial performance, business and growth strategies, projected plans and objectives, and any expected purchases of its outstanding common sto ...

Core Insights - Origin Bancorp reported a revenue of $103.43 million for the quarter ended December 2025, marking a 32.6% increase year-over-year and exceeding the Zacks Consensus Estimate of $100.45 million by 2.97% [1] - The company's earnings per share (EPS) was $0.95, up from $0.46 in the same quarter last year, and also surpassed the consensus EPS estimate of $0.88 by 8.36% [1] Financial Performance Metrics - The efficiency ratio was reported at 60.7%, slightly above the estimated 60.6% by analysts [4] - The net interest margin (NIM) was 3.7%, matching the analysts' average estimate [4] - The average balance of total interest-earning assets was $9.28 billion, exceeding the estimated $9.22 billion [4] - Total nonperforming loans held for investment (LHFI) were $81.18 million, lower than the estimated $89.91 million [4] - Total nonperforming assets stood at $81.88 million, compared to the average estimate of $90.69 million [4] - The net charge-offs to total average LHFI (annualized) was 0.2%, aligning with the analysts' average estimate [4] - Total noninterest income was $16.74 million, surpassing the estimated $15.7 million [4] - Net interest income reached $86.69 million, exceeding the estimated $84.76 million [4] Stock Performance - Shares of Origin Bancorp have returned +8.7% over the past month, significantly outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

分组1 - Origin Bancorp reported quarterly earnings of $0.95 per share, exceeding the Zacks Consensus Estimate of $0.88 per share, and showing a significant increase from $0.46 per share a year ago, resulting in an earnings surprise of +8.36% [1] - The company achieved revenues of $103.43 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.97%, and up from $78.02 million year-over-year [2] - Over the last four quarters, Origin Bancorp has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] 分组2 - The stock has gained approximately 9% since the beginning of the year, outperforming the S&P 500, which has gained 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.89 on revenues of $101.9 million, and for the current fiscal year, it is $3.73 on revenues of $419.35 million [7] - The Zacks Industry Rank for Banks - Southeast is currently in the top 23% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]